Summer Cool Down Continues

The Canadian resale housing market continues to ease up. July sales dropped drastically when compared with the same month last year. This slow-down is not surprising in the face of tighter mortgage regulations and rising interest rates.

"The level of July sales remained below the expected long-term trend. The market has become more balanced following record monthly sales through most of the winter and early spring," said Toronto Real Estate Board (TREB) President Bill Johnston.

While July sales were down compared to last year, the number of new listings in the marketplace also fell. This means there was enough competition between buyers to exert upward pressure on price.